Investing in People, Powering Progress-Ethiopis Tafara On IFC’s Africa Vision

By Ajong Mbapndah L

From his base in Nairobi — now home to the World Bank Group’s largest office outside Washington, D.C. — Ethiopis Tafara, IFC’s Vice President for Africa, is steering one of the continent’s most consequential development missions. Since taking up leadership of IFC’s Africa operations, Tafara has immersed himself in Kenya’s dynamic innovation landscape and the broader currents shaping Africa’s economic future.

In this exclusive Pan African Visions interview, Tafara lays out a compelling vision rooted in one central imperative: creating quality jobs at scale. With Africa’s population expanding faster than formal employment opportunities, IFC’s strategy under his leadership focuses on unlocking private sector potential, de-risking investment, empowering local champions, and closing infrastructure and financing gaps.

From Nairobi’s fintech corridors to fragile states in the Sahel, Tafara details how IFC is combining investment, policy reform, and partnerships with African governments to catalyze inclusive growth. He speaks candidly about the challenges of mobilizing private capital, the promise of initiatives like the Women LEAD Africa Alliance, and the innovative financing models — from renewable energy equity vehicles to SME-focused funds — that are redefining Africa’s development narrative.

At the heart of his message is conviction and clarity: Africa’s growth story will be written by its entrepreneurs, powered by its youth, and driven by a private sector that thrives on partnership, purpose, and performance.

You’ve now spent several months leading IFC’s Africa operations from Nairobi. What have been your key takeaways from Kenya’s development landscape, and how does Nairobi’s strategic position influence IFC’s regional priorities?

Since relocating to Nairobi, I’ve witnessed firsthand the city’s role as a vibrant hub for innovation and enterprise—a true gateway to Africa’s future. Nairobi is home to the World Bank Group’s largest office outside Washington, D.C., attracting a diverse array of investors and offering immense potential for both public and private sector development. Kenya’s development landscape provides a compelling snapshot of Africa’s broader economic opportunities and challenges. The entrepreneurial ecosystem here, supported by robust financial institutions and a dynamic digital economy, is driving inclusive growth. Kenya’s leadership in fintech, renewable energy, and agribusiness sets scalable models for other countries in the region.

Nairobi’s strategic location enables the World Bank Group to engage directly with African governments, private sector leaders, and development partners. This proximity enhances our responsiveness to regional opportunities and challenges, particularly in fragile and conflict-affected states. Specialized teams based here support operational delivery across the continent, making Nairobi central to accelerating job creation and inclusive growth.

I can describe our Africa priorities in three words: jobs, jobs, and jobs. Africa’s population is growing rapidly, with up to 12 million youth entering the labor market across Africa annually in the coming decades, while only 3 million new formal wage jobs are currently created each year. The private sector generates an estimated 90 percent of jobs in Africa, yet many businesses remain unable to access the resources they need to grow and create jobs.

There is an urgent need to create the foundations for quality jobs on the continent. We are doing this in many ways, from supporting improved access to power and greater access to finance to focusing on supporting key job-rich sectors, including tourism and agribusiness.

Our initiatives in Kenya, such as the Africa Skills for Jobs Policy Academy and our partnership with Riara University to boost graduate employability, reflect our commitment to building human capital and fostering innovation. These efforts are part of a broader strategy to scale impact through local solutions that resonate regionally.

You’ve emphasized the importance of aligning IFC’s strategy with national development goals. How is IFC positioning itself as a trusted partner to African governments, particularly in driving reforms that unlock private sector investment and job creation?

IFC is deeply committed to supporting African governments in achieving their national development goals by acting as a strategic partner—not just a financier. We collaborate across the World Bank Group to identify priority sectors and co-create solutions that unlock private sector potential and catalyze job creation. Our work includes advising on regulatory frameworks, improving access to finance for MSMEs, and supporting infrastructure development that enables private sector growth.

Through advisory programs, we help governments design bankable projects that promote inclusive and sustainable development. Initiatives like AgriConnect, Mission 300, and the CRRH housing finance initiative exemplify our approach—leveraging digital solutions, expanding market access, and structuring investments to reduce risks in urban development. We are also scaling our presence in fragile and conflict-affected situations, leveraging blended finance and de-risking instruments to attract private capital into sectors that drive inclusive growth. Our engagement in the Sahel, for example, has doubled over the past three years, with significant investments directed toward women-owned or led businesses and low-carbon initiatives. Ultimately, our focus is on building partnerships that foster trust, deliver results, and transform lives.

You’ve spoken about the need to scale “local champions” and support SMEs through intermediaries. How is IFC balancing large-scale infrastructure investments with grassroots entrepreneurship to maximize job creation?

Infrastructure projects—such as transport, telecoms, and energy—are essential for connecting businesses to markets and services, laying the foundation for economic growth and regional integration. For instance, our commitment of nearly $700 million to digital infrastructure has expanded mobile money and connectivity across Africa.

At the same time, we are scaling up support for SMEs through financial intermediaries and targeted programs. Last year alone, IFC committed $6.4 billion to SMEs, reaching 15 million MSMEs worldwide, with a goal of 30 million by 2030. The Local Champions Initiative identifies and scales high-impact African businesses, mobilizing investments to support domestic firms in agribusiness, manufacturing, and services.

For startups and smaller businesses, our multi-pronged approach combines direct investment with ecosystem building. We invest in disruptive technologies, early-stage venture capital, and SME-focused private equity funds, while working closely with fund managers, regulators, and investors to strengthen the environments that help SMEs thrive. Programs like Start-up Catalyst and SME Ventures provide capital and technical assistance, helping businesses connect with investors and build market expertise. This balanced approach ensures that while we build the backbone of Africa’s economies through infrastructure, we empower local entrepreneurs to create jobs, foster innovation, and drive sustainable development from the ground up .

What are the most significant barriers to attracting private capital to African markets, and how is IFC working to de-risk investment while ensuring measurable development impact?

Africa’s potential is immense, but persistent barriers—such as regulatory uncertainty, limited access to long-term local currency financing, underdeveloped capital markets, and perceived political and macroeconomic risks—continue to limit private capital flow. Infrastructure gaps and fragmented regional markets further challenge investors seeking to scale operations.

IFC addresses these challenges through a multi-pronged strategy that combines investment, advisory, and policy reform. We help governments implement reforms that improve the business climate, such as simplifying FDI regulations, digitizing government-to-business services, and strengthening financial sector governance. To de-risk investment, we leverage blended finance instruments like the IDA Private Sector Window, which offers concessional capital and guarantees in high-risk environments. Our landmark local currency loan to VisionFund Microfinance in Ethiopia, for example, enabled affordable credit for MSMEs, with a strong focus on women-led businesses.

Our goal is not just to mobilize capital but to ensure it delivers measurable development impact. We pair financing with advisory support, helping clients improve risk management, ESG practices, and strategic planning. By scaling local champions and supporting SMEs through intermediaries, we ensure that growth reaches grassroots entrepreneurs and drives inclusive job creation .

IFC recently launched the Women LEAD Alliance to support young women entrepreneurs across Africa. What specific outcomes do you envision from this initiative, and how does it tie into your broader youth employment and inclusive growth strategy ?

IFC recognizes that women’s participation is a key lever for Africa’s development. Women-founded start-ups deliver more than twice the revenue per dollar invested compared to those founded by men. The World Bank Group’s women leadership strategy aims to provide 80 million more women and women-led businesses with capital, addressing a critical constraint to entrepreneurship growth.

The Women LEAD Africa Alliance is a cornerstone of our commitment to accelerating impact for African women entrepreneurs, including youth. The Alliance serves as a catalytic platform to mobilize influence, channel capital, and co-create innovative solutions. It is anchored around four priorities: identifying where capital and policy efforts can have the greatest impact, building support ecosystems through mentorship and market linkages, amplifying successful initiatives, and activating new pilots to test and scale practical solutions.

At its core, the Alliance connects women entrepreneurs to real tools—flexible capital, access to supply chains, digital infrastructure, and networks—while addressing barriers such as safety, mobility, and unpaid care responsibilities .

From renewable power to digital infrastructure, what innovative financing models is IFC deploying or considering to close Africa’s infrastructure and energy access gaps ?

Africa’s infrastructure and energy access gaps—estimated at over $100 billion annually—require bold, scalable financing models beyond traditional development finance. IFC is deploying a mix of innovative instruments to mobilize private capital and accelerate investment in high-impact sectors like renewable energy and digital infrastructure. A central pillar of this effort is Zafiri, a $1 billion decentralized renewable energy equity vehicle supported by AfDB and partners. Zafiri is designed to close the equity financing gap for mini-grid developers, solar home system providers, and distributed energy companies by offering long-term, flexible capital. This approach is critical for mobilizing private sector investment and accelerating clean energy access across the continent.

After years of shaping development finance globally, what motivates you most about leading IFC’s mission in Africa?

What motivates me most is the urgency and opportunity to help Africa realize its full potential. The continent is rich in talent, innovation, and resilience, and IFC has a unique role in unlocking that promise. I am driven by the chance to build ecosystems that empower local entrepreneurs, scale environmentally friendly solutions, and create millions of jobs. Through our work on digital credit infrastructure in Ethiopia, agribusiness financing in Nigeria, and renewable energy in Côte d’Ivoire, we are demonstrating that private capital can be a force for inclusive growth.

My focus is on strengthening IFC’s role as a trusted partner to African governments and private sector leaders by listening, adapting, and delivering. This means helping build stronger institutions, deepen capital markets, and expand opportunities for young Africans across the continent and globally.

*Culled from November Issue of PAV Magazine .